What Is A Cell Tower Ground Lease?

When a cell phone provider needs to expand their coverage it usually means adding antennas and other cellular equipment in a specific location. A cell tower ground lease is a contract between a landowner and a cell provider to use their land for this purpose and typically involves the payment of a monthly fee as recompense.

The amount that is paid to a landholder can vary significantly and is ultimately determined by how much demand there is for cell phone coverage in the area and how many other locations are available: that is, the number of cell phone users divided by the availability of suitable cell tower locations. This can mean rents can range from $10 per month that small carriers pay to $10,000 per month and over that can be paid by major providers for hard to find locations.